Nevada County picayune., 1887-09-22
CALHOUN'S VIEWS
On Money.

else-the constant demand whlch the government has on tho commit nity tor its necessary supplies. A medium, resting on this demand, which simply ubligateS the Gov. ernment tu receive it for all dues, to the exclusion of everything else, except gold and silver-and which shall be optional with those who have demands on Government io receive or not, w0uld, 1t seems tU me, be as stable in it's value as those metals themselves, and be as little liable 10 abuse as the pow CT ot coining. It would contain within itself a self.regulating pow CT. It could only be issued to those who had claims on the Gov ernment. and to those only with their consent, and, of course. .only at or above par with gold and sil- yer, which would be it's habitual state; for, so far as the Govern ment was concerned, 1t would be equal, in every respect, to gold and silver, and superior in many, particularly in regulating the dis tant exchanges of the country. | Should, however, demand for gold and silver from abroad, or other accidental causes, depress it, temporarily, as compared with the precious metals, 1t would then return to the treasury, and as It could not be paid out during such depression, its gradual diminitiOn in the market would soon restore it to an equality, when 1t would again flow out into the general cir. culation. Thus there would be an alternate Aux and rehux into and from the treasury, between 1t and the precious metals; but If at any time permanent depression in it's value be possible from any cause, the only effect would be to Ope- rate as Il reduction of taxes on the community, and the only sufferer would be the Government itself
 Against this it's own interest would be sufficient guaranty. But, whatever may be the amount that can be circulated, l hold 1t clear that, to that amount, it would be as stable in value as gold and silver itself, provided the Govern ment be bound to receive it exclu- sively with those metals in all it's dues and that it be left perfectly ,op. tional with those who have claims
 on the Government to receive 1t or not. It will also be a necessary
 condition that notes of too small q denomination should not be issu. ed, so that the treasury shall have ample means to meet all demands, either in gold or silver, or the bills of the Government, at the option of those who have claims on it.. With these conditions no further variation could take place between it and gold and silver, than tha; which would be caused by the ac- ton of commerce.. ."-Calhoun's $ works, Vol. III. PIP S5-7.
 "To this l might add another objection, not less strong; that for the Government to receive and treat bank notes as money, in it's dues, would be in direct conflict, in It's effect, with the important power conferred expressly on Con. gress of coining money, and regu- l latng the value thereof; but as this will come in with more propriety in answer to an argument advanc. ed by the Senator from Massa. chusetts (Mr, Webster). 1 shall now state his argument, and reply to it. 'IIe asserted, again and again, both now and at the extra session, that 1t is the duty of the Government not only to regulate. l but to furnish sound currency.
 Indeed it is the principal argument relied on by the Senator in oppo. sition to the bill, which he says abandons this great duty Now, if by currency he means gold and silver coins, there will be but httle difference between him and my. self. To that extent the Govern ment has clear and unquestiona- ble right by express grant; but if he goes further, and intends to as. sert that the Government has the right to make bank notes curren- cy which it is bound to regulate, then his proposition is identical with that of the Senator from Nlr. ginia (Mr. Rivcs), and all the argu. ments l have urged against it are equally applicable to his. I hold, on my part, that the power of the Government on this subject, is limited tO coininp money and rec